Govt Outlines Strategy To Ensure US Tariffs Do Not Jeopardise FDI -- MITI

KUALA LUMPUR, Sept 9 (Bernama) -- The government has developed a strategy to ensure that US retaliatory tariffs on Malaysia will not jeopardise foreign direct investment (FDI) and to minimise any impact on the national economy, said the Ministry of Investment, Trade and Industry (MITI).

The ministry said that among the measures taken through its agency, the Malaysian Investment Development Authority (MIDA), are improvements to the industrial infrastructure landscape, strengthening local supply chains and ecosystems, and enhancing the ease of doing business to attract investment into the country.

“Additionally, the government is prioritising talent and workforce development in high-tech sectors, intensifying research activities, and introducing an Automation Capital Allowance to encourage the adoption of automation and Industry 4.0 among companies in the manufacturing and services sectors.

“Other investment incentives include a carbon tax for hard-to-abate sectors such as iron and steel, reinvestment incentives under the New Industrial Masterplan (NIMP) 2030, and the Investment Tax Allowance,” the ministry said in a written reply to the Dewan Negara published on the Parliament’s website today.

MITI was responding to Senator Robert Lau Hui Yew on the impact of the trade war and tariffs on investments from the US and the government’s measures on minimising the effect on the economy.

The ministry said it is also improving and facilitating the investment process by offering project facilitation services and information on the MySite Selection portal and the Malaysia Investment Facilitation Centre.

Moreover, MITI elaborated that it is continuing to work on expanding market access for Malaysian goods and services exports, including attracting foreign investment into the country by strengthening trade relations with existing markets and maximising the benefits of 18 free trade agreements.

“MITI, through its agencies, will continue to intensify efforts to strengthen international trade, particularly FDI, in line with the objectives outlined in the 13th Malaysia Plan (13MP) and its policies, including the New Industrial Masterplan (NIMP 2030), the National Trade Action Plan, the National Semiconductor Strategy, Industry 4.0, and the Green Investment Strategy (GIS),” it added.

 -- BERNAMA